The SECURE Act, the CARES Act and IRA Qualified Charitable Distributions

In January, the SECURE Act of 2019 made a few changes affecting people who give through their IRA accounts. For example, the new law raised the minimum age for required minimum distributions from 70.5 to 72.

Soon after, as part of America's response to the coronavirus pandemic, the CARES Act temporarily made qualified charitable distributions optional. Most required minimum distributions from retirement plans have been eliminated for 2020. We recommend checking with your financial advisor to see how the rule may apply to you. Minimum distributions that have already started are still required from some defined benefit pension plans, but some required minimum distributions that would have started in 2020 may not have to start until 2021.

Qualified charitable distributions are still a great way to give if you are 70½ or older. At this age, a qualified charitable distribution or "IRA charitable rollover" can allow tax-free giving through The Community Foundation. So while the benefit of using a qualified charitable distribution to satisfy your required minimum distribution has been waived for 2020, it remains a great way to make tax advantaged contributions, especially if you don’t itemize your deductions.

The CARES Act, which was necessary to address the far-reaching effects of the COVID-19 pandemic, provides additional tax incentives to encourage charitable giving. You have important priorities for your family and loved ones, and we know that their health and financial well-being comes first. When you are ready, we will be here to help you shape a charitable gift plan that suits your needs and allows you to keep helping the issues and organizations you care about deeply.

Contact us! Please contact Teri McNally, Executive Director or Emma Miller-Richards, Fund Development Associate at 540 373-9292. We are happy to explore charitable giving strategies with you or your advisor at any time.